China's central bank has started offering interest on its digital yuan, a strategic move making the e-CNY the world's first major central bank digital currency (CBDC) to do so. The policy is designed to boost the currency's adoption, particularly for cross-border transactions, as a potential alternative to the U.S. dollar. This development sets the e-CNY apart from other planned CBDCs, such as the digital euro from the European Central Bank, which is not expected to be interest-bearing when it launches. The digital yuan project, initiated by a People's Bank of China (PBOC) research group in 2014, allows individuals ... (full story)